Pennsylvania Hospital has two patient services departments (Medicine and Surgery) and three support departments (Facilities, Administration, and Payroll). You are given the following information: Department Annual Direct Costs ($) Space Utilization (ft2 ) FTE Employees Facilities 200,000 3,000 250 Administration 400,000 5,000 500 Payroll 300,000 2,000 100 Medicine 1,000,000 53,000 2,600 Surgery 1,500,000 40,000 2,300 The cost driver for Payroll services is the number of full-time equivalent (FTE) employees. Using the direct method of cost allocation, what amount of Payroll costs is allocated to the Surgery department? A) $120,000 B) $135,652 C) $140,816 D) $159,184 E) $170,928